EU not about to walk away from away from CETA: Fast spokesman

Despite recent speculation that the EU is prepared to walk away from stalled trade negotiations with Canada, both the Harper government and a source close to the talks maintain that’s not the case.

On Monday, Reuters quoted a frustrated EU diplomat raising the possibility that the comprehensive economic and trade agreement (CETA) might never be concluded.

“This was supposed to be done in November, then we said February, but now there’s no clarity … No one wants to walk away from this, but it could be put on ice if things remain stuck for a prolonged period,” Reuters quoted the source.

Coming a few months after EU Trade Commissioner Karel De Gucht said Canada needed to take “additional steps”, it was either the latest hint that Europe is prepared to abandon the negotiations — or more bluster.

According to Adam Taylor, director of communications for trade minister Ed Fast, the EU isn’t about to just walk way.

In fact, the chief negotiators are meeting again in a few weeks.

“The process of negotiations continues to unfold, and negotiators are meeting frequently to explore solutions to the remaining issues. Chief negotiators have met repeatedly over the last several months, and will continue to meet in Brussels from May 6-8,” he wrote in an email.

That was echoed by a source close to the negotiations.

“Talking to people who are involved… my sense is there’s a lot of posturing in this, but there’s also some reality. I don’t think anyone is walking away,” they said.

Other observers, however, counter that the upcoming EU-U.S. negotiations, which are expected to begin in June, put the pressure on the Harper government to finish before the Europeans get distracted.

“Certainly, I think it is a real problem for Canada… that the EU is now gearing up to start the negotiations with the U.S., and that clearly is going to take a lot of focus and attention,” said John Weekes, formerly Canada’s chief NAFTA negotiator.

Weekes, however, like others, also believes the U.S. is keeping a close eye on the outcome of CETA talks.

“I’m sure the U.S. would be interested in seeing what comes out of the negotiations with Canada, because it is a test of what a country with interests not dissimilar — in some respects — from the U.S., has been able to do in opening the EU market.”

One of those similar interests is undoubtedly agriculture — and particularly, beef.

An EU ban on hormone-treated beef has long irked both American and Canadian producers, and resulted in trade sanctions.

If Canada isn’t successful in getting more access for non-hormone treated beef, the source said, the U.S. might question the wisdom of spending significant time and resources on a large negotiation.

“It does get more complicated with the EU factoring in that the U.S. is going to be looking for beef quota, so that’s an issue,” they said.

“I think there’s a lot of skepticism in the U.S. whether the EU can do a serious deal, and a deal would have to include agriculture to be of interest to large U.S. stakeholders. So I think the ability to close with Canada is going to be critical.”

But that can only be taken so far, Weekes warned.

Canada shouldn’t conflate its bargaining power with that of the U.S.

“I don’t think the U.S. is lacking in self-confidence. And they do have a lot of leverage that they can deploy in this sort of negotiation,” he said.